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I'm not sure why, but it seems that the moment someone becomes financially successful, they quickly find the shortest route to a money pit. It probably has something to do with a malignant 'status' gene.
Now most of us manage to locate a money pit close to home - our house. The Money Pit might be an entertaining movie for some folks - renters no doubt - but for the r est of us, it's a heart breaking documentary. As money pits go, homes at least provide you with shelter and they might even appreciate over time. And besides, we all need a nice place to sleep after making all that dough. But unlike your primary residence, these 5 Money Pits will bleed you of your hard earned money with little return.
5. The Boat:
Yes. You've arrived at the pinnacle of success but does success count for anything if you can't have a boat of your very own? To sail or not to sail - that is the question. When I lived in Chicago, the "successful" people had 40 foot boats in slips right on Lake Michigan. Today, a slip for the summer costs around $4,000. Add to that thousands of dollars in fuel, maintenance, insurance, and then of course, winter storage and a good sized boat will cost you as much as a new car. And how many days a year does it get used? Usually, not more than every other summer weekend. Even more modest sized boats will cost you a bundle.
One can make a weak case for owning a boat if they live in Florida, use the boat as a primary residence, sleep in the engine room and rent the main cabin to tourists from Montreal. But other than that, it's hole in the water you keep pouring money into.
4. Timeshares:
A number of years ago, me and my buddy were lured down to Mexico by the promise of a $100 car rental voucher, a free breakfast, and a lobster dinner. In exchange, we only had to spend an hour sitting through a timeshare sales pitch. The breakfast was awful, the lobster was smaller than a pigmy frog and on the way to the timeshare our "guide" kept raving that our destination was "the #1 hotel in Cabo." When we arrived it was so mobbed with tourists that he took us to another property which was "even better!" and even more crowded. Apparently, they have a different concept of #1.
Timeshares are a terrible investment if you are buying them new. I'm not convinced that as my buddy stated, that "at some price, they become a good deal". Personally, I just don't have any interest in going back to the same place year afer year. But even if I did, and the price were zero, it still costs money. Add in airfare, rental car, maintenance fees, and special assessments and the timeshare doesn't look so "free" any more. Often all those fees will cost you more than you would have paid for a package deal to the same location. And the moment kids arrive, that timeshare studio loses its romantic appeal. Do yourself a favor, get a great deal on a hotel and skip the timeshare.
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